Terry D EA

You need to look up the regulations to claim moving expenses. Your client must have moved more than 50 miles from his previous residence because of job relocation or to get another job. Your description doesn't sound like he qualifies for the moving expense deduction.

Terry D.

Eli,

The 1098T form is for tuition paid either from a scholarship, grant, student, or parents etc. This is not income to your client but a deduction. You need to find out what year of college your client is in. The first two years of under grad work the hope credit can be used after that it is the life long learning credit. It is possible for the tuition and fees deduction as well. Box 2 is the number you add to the tax return regardless of who paid for it. Hope this helps.

Hope your season is going well

Terry D.

I am in the same holding pattern as well. Thanks for the work around ideas.

Terry D.

Good morning to all. If a shareholder of an S-Corp loans the S-Corp money for operational purposes and the loan is repaid by the S-Corp with interest, is the Shareholder's basis impacted in any way? My take is the bais is not impacted as this is a "loan" and not an investment. Any help is appreciated.

Thanks,

Terry D.

Good morning to all! When a shareholder of an S-Corp makes a loan to the S-Corp and receives payment back plus interest, does the face value of the original note to the S-Corp effect the shareholder basis? My take is the loan does not effect the shareholder basis as it is not an investment but exactly what it is a "loan" that is repaid. Any guidance is appreciated.

Thanks,

Terry D.

I agree with Janitor Bob. I assign the PIN using the client's last five of the SS#. I select ERO entered have the client sign the form and keep for my records as required. One thing I do differently is I use the last five of my tax preparer ID instead of my SS#. Other than that, you are right on the mark.

Terry D.

Here is mine. I created this myself with yahoo site builder. Through yahoo basic domain 8.00 per month. Site builder is easy to use.

www.qptps.com

Terry D.

Here is some good information from NAPT. Some of you may have been aware of this change but I just read it. This will reduce rejected returns.

Terry D.

Tax Returns With an ITIN/SSN Mismatch Can be E-Filed

Tax returns filed with an individual taxpayer identification number (ITIN) reporting wages paid are required to show the social security number (SSN) under which the wages were earned. This creates an identification number (ITIN/SSN) mismatch. In the past, these returns could only be filed on paper. The IRS can now accept these returns electronically.

The following steps should be taken when filing these returns:

Use the taxpayer's correct ITIN as the identifying number at the top of Form 1040.

When inputting W-2 information, the SSN should be entered exactly as shown on the Form W-2 issued by the em

Eli,

I read the same alert. I have only transmitted my dummy return and it hasn't been rejected yet. So, I'll look for tomorrow. I hope all is well with you and your family. God Bless

Terry D.

I did W-2's in both 2006 & 2007 and did not have that problem. Sorry,

Terry D.

Wendy is right on this one. I did the same thing thinking that what the heck, I am using a blank form so choose blank forms. When I chose "preprinted" forms, I was able to import 52 employees and I did review each of them and each imported just fine. One other thing I did was manually update the program from the website which might of helped as well. FYI, I am using QB 2006 & 2007.

Terry D.

Well, just got off the phone with ATX and now they are going to have a meeting tomorrow and the customer service manager is looking into this problem but they do apologize. This problem is now called a defect. I think the support agent said the developer's or programmers were coming in tomorrow as well. Why in the heck wouldn't there be programmers or developers or whatever they are called, scheduled to come into work daily during the tax season????? Apparently, ATX doesn't want my business next year. I didn't ask but I wonder if the complete satisfaction guaranttee is still available cause it isn't too late in the season to change.

Terry D.

I just tried to import 52 W-2's and got garbage. Everything was messed up. ATX called and left a message to update the program again because it apparently didn't take before. Either I or others are just being handed a bunch of crap when it comes to the fixes we are being told. I imported 52 W-2's ATX said it was 114. No names, no company names and now no amounts. If ATX has release another version, they must not be changing the version numbers because mine is still the same after 3 updates. Looks like I'll just print them out of QuickBooks. I wonder if I can get reimbursed for the envelopes and forms I bought to work with this mess.

Terry D.

Dan,

It appears you are a little confused with some accounting terminology and procedures. As KC said, "Capital Stock" is "Retained Earnings" as a corporation asset. Common stock is either publicy or privately traded.

One owner could be a single shareholder. The shareholder's basis comes from his/her investement made either by investing cash or the value of any other fixed assets given to the corporation to conduct operations.

You should have a shareholders "Capital Account" and a shareholder's "Drawing Account". The shareholder can only make tax free withdrawls upto the amount he/she has invested which is the shareholder's basis in the corporation. A shareholder cannot take a dividend distribution if the corporation had a loss or if "Retained earnings" are not sufficient.

If the corporation is dissolved, all assets are to be distributed back to the shareholders which can be quite cumbersome with calculations when considering depreciation among other things. I hope this may have cleared things a little and not added any additional confusion.

Terry D.

Hey!! Terry

Are we all set to go?? Hope all is well.

Eli

Eli,

All is going pretty good. If ATX can get the W-2 import problems fixed then I will say all is well and then I will be set to go except for those darned checks I am waiting on from HSBC. Have a great tax season and may God Bless you and your family.

Terry D.

I just got off the phone with ATX regarding the QuickBooks W-2 import problems. They had me run trial balance report which is supposed to format the reports in .CSV. However, that didn't work either. They did admit there was a patch launched last week to fix the errors with the import and it didn't work. They are working on a fix still and promised to call me tomorrow hopefully with a fix.

Also, I called HSBC and all checks and applications began mailing on Jan 4.

Topic was supposed to be W-2 import problems. Sorry I don't know how to change it

Terry D.

This is exactly why I am so glad that I don't process alot of bank products. Since I started using HSBC about 4 years ago all was smooth. Check print authorization given directly into ATX software and printed from there. Now, there are extra hoops to jump through. By the way, voice message at HSBC says all checks and applications began shipping on the 4th of January.

Terry D.

I have been using Trend Micro for the last four years and no problems reasonable renewal. In my opinion it beats Norton all the way around. You can go to my website www.qptps.com and click on the Trend Micro home page for more information. I just upgraded three machines for 49.95 TOTAL.

Terry D.

Terry,

I uploaded a W2 text file to ATX last night and asked them to determine why the employee SSN, employer trade name and city, state and zip are not being imported. They are to send me an email. I'll post their reply when I get it.

Jerry W

Jerry,

I have the same problem. I did get the employer trade name but not the SS#. To do only a couple a manual import wouldn't be a problem. However, I have a company next week with 75+ and that will be a headache.

Terry D.

ATX has just updated 2007 program to include W-2 imports from Peachtree and Quickbooks. I tried to import from Quickbooks Pro 2008 but employee SSN and part of employer's address did not import. Has anyone tried to import yet?

Thanks,

Jerry W

Jerry, I use this feature every year and will be importing the W-2 information from some of my clients this weekend. I'll let you know how it goes. I hope this isn't a problem either.

Terry D.

Nicole, Beth, William and other ATX employees,

I would like to extend a warm welcome to all of you as well. It is comforting to know you are here and are ready to help. It does mean alot to me and I am sure I speak for others as well. I agree that somebody at CCH blew it with loosing folks like you. I have been told that William is still there but he is probably so overwhelmed and I know he will try his best to help, that folks like you are a real asset to him as well.

Thank you for all you do for us.

Sincerely,

Terry D.

Well, Thanks to all of you who replied. I guess we are all in the same boat. I enrolled (I think) successfully with ATX and HSBC. I have tried numerous times to set fees which I now see is a futile attempt. I did the HSBC training and everything that I have done in previous years and have not received any checks either. Filing season starts in a few days, W-2's, 1099's, year end financials are being prepared and I can't prepare a simple 1040 tax return for an early client who can't wait for his money. I bet the big corporate boys are ready to go and I am sure when I can't prepare the return for reasons beyound my control, I will loose clients once again. I realize that the acquisition by CCH would have meant some learning curves and growing pains but it doesn't appear they are off to a very good start. If it continues, I too will get on board with BullDog Tom (don't want to beat the crap out of them) and make it my final year with ATX. I have been with ATX for eight or nine years as well as alot of others on this board and you would think that would stand for something in the eyes of the big boys at CCH.

Terry D.

Does anybody know what the 10.00 transmission fee is? I keep seeing windows that tell me to go online to the enrollment center to change/edit bank fees. I can't seem to find it no matter how I try to get there. Any help is appreciated.

Thanks,

Terry D.

Here is a letter from the IRS that contains more information

IR-2007-209, Dec. 27, 2007

WASHINGTON — The Internal Revenue Service announced today that the upcoming tax season is expected to start on time for everyone except certain taxpayers potentially affected by late enactment of the Alternative Minimum Tax “patch.”

Following extensive work in recent weeks, the IRS expects to be able to begin processing returns for the vast majority of taxpayers in mid-January. However, as many as 13.5 million taxpayers using five forms related to the Alternative Minimum Tax (AMT) legislation will have to wait to file tax returns until the IRS completes the reprogramming of its systems for the new law.

The IRS has targeted Feb. 11, as the potential starting date for taxpayers to begin submitting the five AMT-related returns affected by the legislation. The February date allows the IRS enough time to update and test its systems to accommodate the AMT changes without major disruptions to other operations related to the tax season. As the IRS has said previously, it will take approximately seven weeks after the AMT patch was approved to update IRS processing systems completely.

Although as many as 13.5 million taxpayers will not be able to file their returns until Feb. 11, the effect of the delay may be lessened by the fact that under previous filing patterns only between 3 million to 4 million taxpayers file returns with the five affected forms during these early weeks in the filing season.

“We regret the inconvenience the delay will mean for millions of early tax filers, especially those expecting a refund,” said Linda Stiff, Acting IRS Commissioner. “We’ve taken extraordinary steps to figure out a way that we can start the filing season on time for most taxpayers, including some using AMT-related forms. Our goal has always been to make sure we can accurately process tax returns while getting refunds to taxpayers as quickly as possible.”

The February delay caused by the AMT patch will affect taxpayers using any of these five forms:

Form 8863, Education Credits.

Form 5695, Residential Energy Credits.

Form 1040A’s Schedule 2, Child and Dependent Care Expenses for Form 1040A Filers.

Form 8396, Mortgage Interest Credit.

Form 8859, District of Columbia First-Time Homebuyer Credit.

While these five forms require significant additional reprogramming due to the AMT patch, the IRS has been able to reprogram its systems to begin processing seven other AMT-related forms, including Form 6251, Alternative Minimum Tax – Individuals. Taxpayers filing these seven forms should not experience delays in filing, and the IRS expects to begin processing those returns starting on Jan. 14.

Electronic returns involving those five forms will not be accepted until systems are updated in February; similarly, paper filers should wait to file as well. All other e-file and paper returns will be accepted starting in January. The IRS urges affected taxpayers to file electronically in order to reduce wait times for their refunds. E-file with direct deposit gets refunds in as little as 10 days, while paper returns take four to six weeks.

“E-file is a great option for everyone, especially if they are affected by the AMT,” said Richard Spires, IRS Deputy Commissioner for Operations Support. “Filing electronically will get people their refunds faster, and e-file greatly reduces the chances for making an error on the AMT or other tax issues.”

In addition to filing electronically, the IRS urges taxpayers to take simple steps to avoid problems:

Taxpayers filing electronically should make sure to update their tax software in order to get the latest AMT updates.

Taxpayers with $54,000 or less in Adjusted Gross Income can use Free File to electronically file their returns for free. Free File will only be available by visiting the official IRS web site at IRS.gov. In all, 90 million taxpayers qualify for this free service.

Taxpayers who use tax software to print out paper copies of tax forms should make sure they update their software before printing out forms. Taxpayers using paper forms can also visit IRS.gov to get updated copies of AMT forms.

The IRS has created a special section on IRS.gov to provide taxpayers with additional information and copies of updated forms affected by the AMT. In recent days, the IRS has posted updated copies of all forms affected by the late enactment of the AMT patch by Congress.

The IRS also reminds taxpayers that printed tax packages, which will begin arriving in the mail around New Year’s, went to the printer in November before the AMT changes were enacted. The packages reflect the law in effect at the time of printing. The tax packages include cautionary language to taxpayers that late legislation was pending.

The IRS is also working closely with tax professionals and the tax preparation software community to make sure they can help taxpayers with all of the latest developments on the enactment of the AMT patch and other tax changes.

“The IRS is going to continue to do everything it can to make this a fully successful filing season for the nation’s taxpayers,” Stiff said. “We will continue to work to keep taxpayers up to date and make this situation as easy as possible for everyone.”

I thought many of you would like to know the information below regarding the filing season delay. Looks like we will be ready for individuals earlier than the projections. Enjoy!!

Terry D.

ATTN: Software Developers, Return Transmitters and Authorized IRS e-file

Providers/EROs

EROs can submit most returns when the e-file system opens on January 11 but

there are a few forms the IRS will be unable to process due to processing

changes required by the "AMT patch." As a result, the following forms should

not be transmitted for PATS testing and cannot be e-filed until further

notice.

*Form 5695, Residential Energy Credits

*Form 8396, Mortgage Interest Credit

*Form 8859, District of Columbia First-Time

Homebuyer Credit

*Form 8863, Education Credits

*Schedule 2 (Form 1040A), Child and Dependent

Care Expenses

However, you may continue to test your software without these forms and pass

PATS testing. You may test the above forms at a later date when the changes

to these forms have been implemented.

EROs may prepare and hold tax returns containing one or more of these forms

until the IRS can accept them. EROs must advise taxpayers that the returns

will not be e-filed until the IRS can accept the five forms mentioned above.

The stockpiling rule does not apply in this situation.

The IRS e-file specifications reflecting the legislative changes are

available to software developers and transmitters for download on IRS.gov

and the Electronic Filing Bulletin Board System.

In addition, Form 8886, Reportable Transaction Disclosure Statement, will be

unavailable for PATS testing and for submitting through live e-file

production until further notice.

More details will be shared as they become available regarding the date IRS

will accept returns containing one or more of the forms described above.

The IRS issued news release IR-2007-209 announcing guidance to help tax

filers in 2008 affected by late enactment of the AMT patch. The news release

is available on IRS.gov.

:rolleyes: